- Oracle shares were down 3.7% at $145.48 in midday trading on Wednesday, August 12, after falling about 4% on Tuesday, August 11. [1] - Management said Oracle expects roughly $70 billion in net capital spending for fiscal 2027, while its formal outlook calls for $90 billion in revenue and $8.05 in non-GAAP earnings per share. [2][3] - Oracle ended fiscal 2026 with $638 billion in remaining performance obligations, but free cash flow was negative $23.7 billion and the company expects to raise about $40 billion through debt and equity in fiscal 2027.
[2] Oracle shares fell again as investors questioned whether the company can finance and earn adequate returns on its rapid expansion of AI data-center capacity. ORCL was down 3.7% at $145.48 in midday trading on August 12, according to market data, following a roughly 4% decline on August 11 reported by MarketWatch. [1]
Backlog versus cash burn #
Oracle’s latest results show strong demand alongside heavy investment. Remaining performance obligations reached $638 billion at the end of its fiscal fourth quarter on May 31, up $85 billion sequentially. Cloud infrastructure revenue rose 93% year over year to $5.8 billion in the quarter. [2]
The funding burden is the concern. Oracle reported negative free cash flow of $23.7 billion for fiscal 2026. On its earnings call, management said net cash outlay for fiscal 2027 capital expenditures should be about $70 billion, including data-center construction and related infrastructure. That figure is management’s spending expectation, while Oracle’s formal guidance is for $90 billion in revenue and $8.05 in non-GAAP EPS. [2][3]
Analyst caution #
Citizens JMP said Oracle’s accelerated data-center buildout was pressuring near-term gross margins and raising questions about capital expenditures, funding and returns, according to Reuters’ June 11 report. Melius Research separately questioned whether Oracle could maintain its spending plan if additional AI customers require more capacity. [4]
Oracle says customer prepayments and customer-supplied GPUs accounted for $75 billion of its AI contracts, reducing the capital it must raise. It also said it expects to raise about $40 billion through debt and equity in fiscal 2027, including a previously announced $20 billion at-the-market equity program. [2]
Companies mentioned #
Further sources #
[1] MarketWatch reported a roughly 4% decline on August 11; market data showed Orac… ↗
[[2] Oracle’s fiscal 2026 earnings release disclosed its $638 billion RPO, negative … ↗](https://www.oracle.com/news/announcement/q4fy26-earnings-release-2026-06-10/)
[[3] Oracle management said on its fiscal fourth-quarter earnings call that fiscal 2… ↗](https://www.sahmcapital.com/news/content/full-transcript-oracle-q4-2026-earnings-call-2026-06-11)
[4] Reuters summarized dated analyst commentary from Citizens JMP Securities and Me… ↗
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